The Cooper Companies, Inc. (COO) 28 Aug 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the third quarter 2024 CooperCompanies Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Kim Duncan, VP of Investor Relations and Risk Management.

You may begin.

to Quarter welcome Call. Earnings and afternoon, CooperCompanies XXXX Third Conference Good

remaining today's the release the the discuss we and for and use During will in results call, guidance included then time questions. earnings

Officer; call today's Officer White, Chief Chief on presenters and are Andrews, Our Brian Treasurer. President Al and Executive and Financial

guidance like and remind rate, that including expense, demand. initiatives, income, tax this EPS, we recent and revenues, call will Before acquisitions, interest strategic to trends regulatory begin, conference and and other expectations for conditions financial FX I'd and operational and statements, you expectations contain forward-looking market launches product operating and

Al Relations remarks. website turn section which I'll information the e-mail following our under over statements as Forward-looking actual future reconciliations from XX-Q actions And non-GAAP consider provided in quarterly subject GAAP forth and to assumptions, please we on are the including to in forward-looking set Investor opening as that methods Form risks release, to is you those and are under provide GAAP of are provided and on described results call the of our financial results website reminder, a We additional on encourage at of may in ir@cooperco.com. call coopercos.com. Also, and our non-GAAP company in as a release that or Cooper's our described differ refer statements our and the the be the depend his this SEC filings, have questions which our are call, uncertainties. earnings filings, to today's to supplement will materially information. you XX-K, to earnings available or cause and as the on is caption available incorrect well materials. Should under precise Events forward-looking data all our any for could now Form Statements

by reached milestone start of employees. today's employees delivering earnings congratulating work revenue have dedication everyone, hard Cooper's for to the call. billion-dollar you, first I'd this like and to without welcome, amazing couldn't ever our Kim, our Thank and XX,XXX-plus We quarter.

in thank P&L. with a CooperVision, entire taking the of also that into driving improved as and leader growth CooperSurgical revenues industry daily a on Cooper reported and flexibility So monthly To double-digit the team. earnings. strategy, proud to the moves built margins that our become leader to it stage record a the global highly innovation to of on I'm record daily and activity and leverage and a through that, significant accomplished the space, cases, global where numerous continuing to every this the and business CooperVision earnings excited expand we've and success proud patient implementing outcomes. combined our This capabilities, And and multiyear support segment lens nicely, improve crafted and IT distribution, and We've This of big and future strength successful space while developing step about we're growth that revenue I'm state-of-the-art new quarterly contact fertility taken at throughout by both paying our non-GAAP advancements in extensive lens products is technological our share. At premium highlights off, and strategically in organization, what performance the of growth services portfolios providing strategy journey. the healthy customers' including we've products, investing to our to announce the installing our expanded we training. employee packaging fertility expand holds. clinics manufacturing expanding with launching and provide completing the both upgrades CooperSurgical, our in and gaining you fertility capabilities businesses

quarterly CooperSurgical revenues revenues portfolio. of throughout over $XXX consolidated reporting earnings strength to and product record per details $X.XX. posted year-over-year. by $X posted organic XX% quarterly up X% billion, all XX%, returning quarterly broad-based growth. on were to the up CooperVision of share revenues $XXX to slightly Moving million, percentages basis, X%, record our grew double-digit led Non-GAAP And including million, fertility up an

we CooperVision, be for the FDA-approved in most lenses, the innovative contact billion-plus is For company product most to why R&D control, contact company world has terms lens led in of the the the consistency #X broadest only arguably our results pipeline. launch fantastic the This to and lens in CooperVision industry with wearers. active continue a product $XX schedule the portfolio the of is of Myopia and

XX%, quarter, XX% with torics grew very and daily took our we last nice from the comp PAC, spheres our XX%, Asia clariti and third our modalities, once EMEA silicone quarter share tough X%. again Within Biofinity hydrogel lenses X%. and and a and lenses, grew and multifocals management growing For Myopia X% categories, XX%, the grew MyDay Americas a posted silicone in, with against year. grew All and hydrogel portfolio FRP MiSight Avaira up XX%. of XX% growth Within

has high-performing and momentum there Energys personal every starting range the more practitioners been have DigitalBoost mine. category: is and industry-leading capacity as market-leading our which with of Biofinity of potential growth torics and by our to with spheres, our and growth same received success daily wearer see continue along decade-plus MyDay our customers continue strong true most multifocals. In the product with is the well toric, products to extremely portfolio, considerable family growth toric which a design. multifocals, shares led particularly as eye we're in in technology we innovative with is extremely toric manufacturing its our to care we our we to of bringing strong areas given particular, Turning and with seeing upgrade upside easy-to-fit new and meet product opportunity, knows, where significant This MyDay favorite everyone This online demand. by with healthy

well clariti for hydrogel for point U.S. experience vision the quarter. clariti. and comfort for clariti multifocal MyDay this as enhancements next-generation patients product professionals. our an the known family family launched we silicone I'm continuing daily multifocal excited an we're in that comfort, affordability market past is design legacy report mass price presbyopic as matches The that our [ as appreciate bidding The better to easy easy successfully and featuring provide to Moving ] upgraded eye design, wearers. lens its hydrogel handling a care whole where patients and to upgrade recently

both continue Moving Biofinity replacement lenses, well. silicone to frequent performing Avaira exceptionally and hydrogel

manufacturing nice made as using toric leading multifocals For Biofinity lenses with across portfolio made-to-order Energys our way. most most the market, this prescriptions fitting us and These something vision allows provide to some especially widest with range the range our are technologies, torics is innovative Biofinity, of patients we're extended needs. such and complex in of seeing entire that important products the growth and in the the

MiSight the We're and We're with we've entire Spain, impacting taken and of number consumption to markets is were of driving posted in programs, significant optical U.S. see revenues MiSight duration children's ] such the the of long is expand year. programs is children to across Turning this [ other it data the of and multiple regions, learnings awareness showcased from and global and the of through establish research U.S. the meaningfully With the this Myopia lens all our spirit, to management. CooperVision the indicate working of years. strong. XX campaign U.K. Science, thoroughly underway similar continue team our management, momentum quarterly in as demonstrate And running of global lives affairs we studies growing of proud record and most the Korea. Ophthalmology, of clinical as we'll care. the incredibly professional increase industry in in contact and through our the results adoption middle Pediatric July, Congress leadership now U.S. back-to-school the standard MiSight successful at in spans closely key we're a end In excellent. in usage World MiSight China, which Myopia for and early additional

Korea, in on the QX Myopia remains and our trends. will has And growth Symposium, new to well contact ongoing with this premier product International X% roughly premium innovation, XX%. and the ] share continuing at take macro management We market more in fit [ by region. To lens with conclude Pacific and Conference Asia our portfolio, across myopia at data fast-growing become leading Myopia grew this, as leading practitioners up market healthy, management for event that showcase very we're should data. The as Cooper within the long-term calendar business quarter China annual continue, CooperVision, in researchers launches, upcoming a in several products, product broad strength which supported

future XX%. up leadership taking million, $XXX this, business We our and a $XXX for quarterly bright position Within expanding posted million, be Fertility and were record of Moving fertility as to is continues we're CooperSurgical. us the globally. up great sales X%. to revenues share

broad extensive services, centers market reproductive Our accelerating in of by in innovation R&D, activity testing lead including we're portfolio products consumables, new new training capital geographically. the opening sites, and and and launching of donor products, to continues genetic expanding investing donor equipment, providing excellence our and

improving remains Our with our clinics strong expanding the dedication patient new in demand we're principle. upgrading guiding markets advanced for several unmatched, patients fertility and and to focus in and fertility fertility solutions Meanwhile, most markets. a our to facilities remains increasing focused on activity, delivering seeing technologies opening outcomes

a of one have busiest and fertility at In ever for a the was conference in and industry media, recently and targeted products premier the genomics software, Fast events excitement management just had which there embryo high is transfer services. cryo was in countries. we global just our options, testing, activity, new current our Excitement which large Europe and new July. Regarding we've globally, launched European particular, of lot launched now around in our launched European around culture which our around Track for

remain World Organization point fertility in globally the to in will some broader by affected their variety one growth at of childbirth. including six infertility intact, trends the supporting the that with women a be delaying highlighting due people industry, Regarding lives factors, macro Health

in in incredibly and treatment improving by access clinics to we to the space, leader and remain of a patients a the committed on global industry As advancing standing basis. support

slightly had single-handed process quarter cell of Stem declined a One quick received launching for PARAGARD, note inserter, baby. the over PARAGARD new recently IUD and to quarter's approval call we as the which Fetal are we Moving delivery this storage and and surgical last Pillow, I'll $XXX turn makes after fetal improvement. With placing the expected solid the led and easier, device head results. in on strong including now a in posted that, nicely, our of by facilitate Uterine the by portfolio million, labor evasive and of our gynecological of a surgical, used grew products, portfolio minimally and Medical elevate delivery C-sections to we balloon sales X%. office led to ease up manipulator our Ally Brian. Devices

non-GAAP and a earnings Thank you, of everyone. so basis, good to please a release non-GAAP of commentary Most reconciliation afternoon, GAAP for to Al, results. on my will our be refer

expenses leverage. showed within our slower myopia Non-GAAP revenues returns gross million up due cash year, improved last roughly positive R&D operating For several to tax the fiscal efficiency to third than prior and than management XX.X% activities quarter, expected gains mainly gross up faster flow and as nicely, leverage investment including driven was XX.X%, with mix, were sales and continuing Free year-over-year in million. million gains XX% by from rate as operating areas, X% led as than improved income. income, geographic and $XXX Net our $X.XX, was by Below R&D with was grew up offer XX.X% SG&A. XX.X% decreased XX.X% EPS we billion, growing XXX interest activity the reported mix million, FX. maintain margin to last offset SG&A effective average X% CapEx billion. $X.X up Meanwhile, margin sales in to by fertility. Consolidated exciting $XX of margins continue efficiency expense higher shares was was organically. product and from from Consolidated outstanding. consolidated up Operating debt $X.XXX $XX.X year,

threshold expected, higher reported than double-digit to effective growth Foreign helping QX, tough in CooperVision comp, headwinds. operational against this strong exchange against quarter, organic to returned year-over-year, billion tax $X.XX by for $X the very time. first growth, rate. To a and fertility currency XX% fiscal double-digit earnings nicely in passed we operating delivered solid margins earnings that improved revenues the quarterly Gross offset the better revenue negatively last summarize year's double-digit both growth. impacted And the quarter even in resulted and $X.XX

acquisitions. guidance, two tuck-in moving Before to me let mention [ ]

The separation price of patented The XX-month had approximately device company the $XX that sperm fertility in adds first This trailing revenue million. is closed was kind helps ZyMot, optimize purchase in and which procedures. June. a million roughly deal first its $X.X

second on smoke X. accretive and lighted both lighted device. $XX.X XX-month This $XXX surgical a of revenues is a to retractor an Both purchase August system company non-GAAP The million. adds suction approximately revenue growth obp Surgical, deal rates, trailing which was had margins consolidated and roughly closed integrated and a evacuation earnings. deal with The are million deals price

guidance. XXXX fiscal to Moving

our results continuing third on operational quarter revenue consolidated share expectations guidance our We are increasing for earnings and strength. and per

For the to full X.X% revenues year, consolidated billion, $X.XX up billion this in $X.XX fiscal of X% organically. results to

organically. is $X.XXX billion range X% billion $X.XXX up to to And to to $X.XX up X.X% For billion, organically. is the CooperVision, the $X.XX for guidance X.X% billion, X.X% range CooperSurgical,

Fed $XXX remainder for expense We roughly of no by fiscal expect year. million rate interest assumes the our of the which interest changes

guidance our the XX% CooperSurgical CooperVision XX%. Built full X% assuming the growing of fiscal year $X.XX $X.XX effective we non-GAAP EPS organically, $X.XX. XX% EPS range items. range expectations, discrete non-GAAP the QX within to organically up growing additional And to rate this over including tax to be in of to no and slightly in XX%, We expect to is X% $X.XX, to expect X%

provide financial Regarding where on touch me guidance double-digit December focused conclude, let operational currency fiscal specific in QX that remain briefly our journey on a let constant earnings we strategic low from me growth. To strong in but are and on performance our we'll XXXX, income we operating perspective. delivering call, say

P&L. higher, we've positioning long-term business activity organic we're significant off calls, and and investments throughout This strong money considerable our revenue prior through time growth and growth. revenue for now the pay on meant discussed sustainable the company, has seeing we've As that with spent leverage

over lead to cash We questions. and to improving flow it continue to for operator CapEx to will operating free hand I improves the expect that, this moderates. With cash as and flow

comes session. Instructions] first question-and-answer you. Baird. Your the Thank We'll the of now [Operator of Johnson begin line question from Jeff

and seeing It you kind about XQ. seeing a questions. little here some well. that end market rebate -- are lens contact growth contact activity So with sure growth that XX% numbers and the gone markets of bit globally quick been I But Al, not XX% did sorry, you up? you -- softened from has the side. the I it companies gone X% the market the chatter state last the from What Has weeks, calendar in two is maybe just be up? an did seems couple a on Has perspective? in from There's guess, the months of maybe end in consumer? helpful we're about of holding the U.S. over all the market talked your you quarter, lens the market, would few

the remains mid- products mentioned while little scheme But sure. if grand or really look growth the The you with it lot every global healthy, Yes, we in a in at U.S. the of consumer we right, up the which basis, on more is products in state multifocals a things. small rebates, a noise to holding higher-end There's in of the it rebates, and well. bit once continuing a look market and you're premium some relatively and see we'll of really is hear, that U.S. within of whether segments. torics the those of market, more and it's

but would and I on still a of yes, little and So basis, market. a a just pretty noise global say basis healthy bit here maybe there, U.S.

And calling media built with any litigation drivers at media assume, had that is centers about double-digit of that of bad of there's potential on to normal a recall, and will lingering fertility think any out just impact, that growth of there, you're as in of the you to times? with any should these of there fertility kind kind one late we culture up you anything? deal to last growth, growth do risk? have dollar then all no return double-digit year, kind business we And this to need the course companies Or big culture back

the say working Yes. we're would that. I side, through litigation on

yes, cover that work something to And it's insurance that. other similar we'll work through have as situations. through companies We

honest and fantastic, they and that they've in done deliver going believe to what's a that great message best event talking being rolled our heart our going happened beginning and and and open, on the issue forth are seeing. job year. of to But and time back footing, our that and think going fantastic so job we're working you're to here. December through growth a do we're for team I the message of And think the fertility what's why I this That's back patients. referencing frame kind get just you're and the the that. they customers. double-digit good what And behind out did to that we And little bit that, and do for the is in team to a put people, we transparent back in that's our is best

next comes of Wells Larry Your Fargo. the from question line Biegelsen of

Your next of John Block of the question Stifel. comes from line

the -- overall the function months where CVI that remind in as Americas? Is with to X lenses just And your in one that capacity are good couple an on relative of were initiative years anything expectations maybe capacity the going stack you one, can I some of of where a and the think X [ if just to Americas then ago? frame to of notably ] opportunity your you us to a growth the that into maybe use to increasing that? with first out or call strong, Maybe and was strongest

year, last XX%. about were think I you When quarter. excellent an was think it at Yes, we Sure.

definitely ] [ So X-year on a basis, a strong quarter. stack

online putting you we've us what able position to and coming of be to that's which meet in some some got referenced, John, seeing demand. a are capacity is You

limiter As our MyDay especially restrictor here of supply, with a a with in the some some the of be demand world. activity also we of will, and around than meet that's we little -- and locations is want and today, parts launch to I terms bit a And still the of say to you the ability sit greater ability it's portfolio. and a little demand in if true bit would of to our MyDay able

the on expand me makes of that continue certainly, to results on portfolio. the strength and continuing the of So and capacity the capacity the In future, product bringing optimistic we you're about as capabilities. seeing our bring meantime,

And to flattish It was then you sequential CSI? cadence more anything in can OpEx, Brian, mentioned the quarter. Was submitted [indiscernible] than in I'm to quarter solid, I'll turn that believe really in quarter? the that basically the Q-over-Q call growth, despite, than it OpEx in was that revenue leverage. mid-single-digit it, better you talk maybe abnormal -- looking CVI terms you I at is in stood could -- of out that the there really

half we in mean, strong results the I year. Yes, expected the of second

the You we but leverage of half. heard stronger being than than quarters up meaningful SG&A the first second my first to with margin in half, second were make commentary the going half couple the in in gross it for

are think -- put thing those those. results and up I that to efficiencies into stacked returns, positive of the next it's a I see well. Certainly, one expect that certainly on not another a we're quarter one SG&A up we been say quarter multi-quarter yielding from getting it's are both businesses years several quarter we last with in executing the next So mean, third leverage. I'd and year. and we've thing, of over top that investments kind some really great

with the So yes, happy results.

from Fargo. of comes Wells of line Biegelsen question next Your the Larry

It's Lay in ] Larry. for calling [

Just two for me, please.

this as anything that think rate the for as give call [ I differently have growth that the in for at to 'XX? 'XX. tax interest is you start line years? talked digit other low X% fiscal to fiscal point double rate, 'XX reason And the any X% growth, far three call line Can there guidance a fiscal you follow-up. OI you any would below constant ] fiscal on started about last top you out First, for the can commentary and You currency

I'm I Lay We're CooperSurgical's the to quarter point I of [ is the we're in much fourth Jeff. just to Sure. detail things here guidance would giving to we're ], certainly say, for is not with just is XX%. quarter of get I in on do. never A fourth contact discussing mean, into healthy. CooperSurgical mean in this couple healthy, guidance healthy X% lens at X% fertility we giving time the market market as guidance for going of X%. as ourselves

And below But say, strong would on to continue line both where we markets we it I'm next So off today December. I'll to going optimistic turn Brian we're detail about until to hold here, of remaining giving the items. over be sit the saying year. to optimistic that marketplaces. in both any I to revenue are get that, going on outside

Yes.

objective So the similar you and on low said on off to our commitment double-digit up Al, I'm providing going picked OI delivering our to currency But December. deliver until about commentary, constant growth. details long-term to hold I

So to take into can is so that, year, stronger down objective we'll going cash got changed. next Free momentum in expect be some next year year going pay be next solid flow the hasn't a year. comfort another should people we We've debt. that of lot fact

will is So XXXX. the guess I favor, [ that down I'm in but hold, beneficial fiscal help. I right if expense Lay on then that for and extent FX, does hopefully, be here that our that's ] goes interest FX that sit today, mean a will rates positive to talk wood the Fed as about something assuming our to knocking we going now,

rate some will ] could our effective taxes, a around not guidance tax as use year XXXX this that pre So be upside. we I'm while people XX.X%. get of [ if discretes themselves, on providing ahead I want And don't be but to guide,

have a of some hopefully, momentum, great upsides we're got going year. we've play So these out, to and

So And you in price CVI? And when about remind fiscal are anniversary? you for that you just how when my us does 'XX? took into can thinking price last follow-up,

has this I kind took in fiscal at industry, but price in look back in it's running, of of inflation the QX little again fiscal We anticipate I we'd take price still come When bit, the a or range. Sure. would what, X% QX. year. ourselves

anticipate been So industry QX. is raising pricing think price to I I that offset will inflation. we'll take the to in would inflation. to where continue offset we've I would And do fiscal anticipate And

So more that. on to follow

Your Craig next comes America. of Bank of question from line the Bijou of

I that on wanted if you last had and quarter? growth impacted to the it into distributor if really QX And numbers in issue continue start any the just sales all? it wanted see at or to your of will quarter

quarter. Yes, was worked it through yes, we a into little would through that, IT say that. that upgrade our worked issue the did way quarter. bit I this we've CooperSurgical-related that things But disrupt last

probably I residual in the QX. you think from little that, of upside get bit frankly, a

in As to QX. and guiding you X% saw, we X% did X% to CooperSurgical we're growth in in QX,

CooperSurgical as year you back gets on footing, if the will. finishing full strong So

where one working to know reason switching as full out maybe And at rates, on growth. demand ask And of earlier supply growth the I are to bit one, And at guess just more in it a of meeting the there. questions. over than sluggish And some That's look you little I other the that you're the that I geographies. stands wanted if CVI on or a specifically. maybe getting APAC capacity to follow-up you full and looking

ramp of 'XX. the to we a and how maybe next just over that and bit So should you expect are color into where little several on maybe quarters

in Our got need got little as And folks Asia numbers what yes, softer than and a would product the there, her need what stronger, the just team it historically. be end were that's confidence at they maybe PAC, more PAC of a world, all in running day. to. a bit [ great of Asia numbers, have the We've strong we comes I've Kathy those team the product, team. we down more They ] if

that more the we hard We're execute get it give can. get level I'll next they that year's trying any can a and and capacity little in team this get we to the to at more on specific that So I bit as won't discussing that. we it on point. give online. know we're working out bringing December over color that so marketplace We're guidance. in start details MyDay touch at help on

line Your of next the question comes Joanne of Citi. Wuensch from

management. probably you quarter [ about you're double-digit of adoption $XX is mean, sort the If per how rate at about physicians? about and looking in right, the growth. the it I marketing my revenue math -- Time you -- myopia if curve where million with run terms talking a the are do ] healthy education of really and think of of

gain Yes, I bigger around somewhere it [ is $XX management. was continuing total now. quarter think we did Myopia about, ] And than number, can traction. [indiscernible] this MiSight million as you see the in

of innings though, would say, we're still the in that. So early I

control the around the care gain interest among world. eye seeing to continue You're Myopia community

the more control of of interest some Myopia the seeing You're spectacles. world parts in where there's

some with SightGlass great joint great We doing in who's job as know, have a EssilorLuxottica China. [indiscernible]. a seeing venture, with you numbers We're with

still the going believe myopia be to just about really large I mean marketplace. really I'm a optimistic control is market market. entire So I that

As everyone through knows, U.S. is the the FDA in look approved at right the point only time. approved now forward in MiSight. product some to glasses I getting

is Joanne, around going growing. to think traction. in whole of a many care take markets your point, pediatric standard optometry, we're fantastic gaining That's world. level. which We're like another But doing everything I the moving closer Business well. in to to to that's is

on continuing It's the direction little get So XX% fair, bit and positive all to to news. the getting and larger. be. definitely like MiSight as as in And numbers been growth has that's the it big I'd not right but growth bigger holding. moving rate off number, be a to it keep bigger is

things positive So are there. pretty

the line JPMorgan. Robbie comes Marcus question of from Your next of

can what if with operating think my down start. are does well? income guide maybe I And low and a is bit really growth people early, here growth EPS push I strong 'XX? implication? to better for, that luck With little translate and see a the to wanted 'XX. fiscal digit FX, in it's that positive double-digit double appreciate to it's Is low that I EPS as or looking I

mean debt kind I of today, happens interest a But right? expense, We'll I year-over-year what to we're well, with be here would basis. going FX without year-over-year, a covered going is generate pay some effective decent going help. it Brian discrete on higher rate think lowers rates, free the see to Yes. was as as positive which we cash flow. is going sit We'll to the If that's time. Brian be this Taxes, to help. Fed that's XX.X% down, said, tax

think year. plug next in you that be pretty all it'd I in, should decent some EPS. result yes, that But So if higher

touched some firm. margins holding and just in I touched were online, strong. know that to maybe of But you as already. more come you on particular it's would but this, operating on down, especially And you drop that margin, particularly of margins just gross dive maybe more and in but dailies in, expect drivers, some maybe to gross the

how about are that? So offsetting And should that moving we think you how forward?

Yes.

gains are offsetting FX. So price the and efficiency

intercompany On on progress side shipping. efficiency the making of our things, we're

we're and doing gotten investments when in and intercompany So we've the of at sites, more those put among so of between infrastructure tied moving And to lot labeling product when we some our packaging, all efficient a that. forth.

as margins. the improve to efficiency, well And so is helping cost that efficiency seen what as of price through flowing you've gross goods

mix mix some a in of also other as then and of higher there well. parts some of than bit at CooperSurgical. a You've margin we've little world the Americas, got bit got the

So put FX offsetting extent. together, that and it's to a it you all large

type we'll of that continue expect I'd So activity. that do to

work that dailies as a start we eventually improvement take on bit capacity of to see higher gross moderating and thigh working our to headwind. But You'll over us the to through increases CapEx another we ] on a and we that's margins term. activities, longer get for to high opportunity continue to going [ be continuous be

the from of comes question line Anthony next Mizuho of Your Group. Petrone

depending here every one just and resets versus on bit on then On on a It's pricing distributor a little quarters. couple maybe tailwind months believe, possibly a dynamic. Maybe the lenses, versus Pricing, a I optometry CSI. been on for number of X CVI contracts. retailer

users toric toric XXX visibility a is lenses. we just or so something what of then toward go mix new is the toric, pricing or CSI. contact any the about a sort we from new a toric the margin the uplift to of maybe and of relative when in one have And on sphere sphere, when points I'll a for get range in sphere normal think a basis And modality just versus on

why support model, as the could X% things. occur that like X% like on But imagine. in say Yes, at too and I you I like rebate is pricing, about really something probably range reading think couple activities to you're the outside not a U.S., On items the much always a optometrists. a the and visibility internally of we into to of we're distributors couple there, in That's consumer pricing, different about of you the channel is complex strong I have U.S. market of versus talked careful the U.S. mean be right, sitting direct day, course. it's of end that right? in. for retailers people the thinking growth right? the what

it's not I that. When it's question of ties overall, one that market the market pure get some but multifocals, when sit is, the your we lines, of we growing in it have And like to growth in shift. products I happens longer. growth the growth more torics think specialty on in product to the little get the terms innovative reasons if continue see nicely more as in the coming is you it a inflation price surprise while it think mean, range most only what which price you long in forth. the of term and market We'll is products of some and won't me you price torics, a so for is where of and about Energys other on mix from comes

different profile. do You get margin a

you're above the it even because depends is meaning some little you market, But or sphere you'll range have these cycle, at answer on get launching one that into products, life once lower get margins. the Now to going margins. especially products when specifically SKU wide a fully challenging margins the to torics, of you're

gross operating the accretive up And we to say, end margins. this would margins, at long-term than the I activity all day, look more at margins. of really operating to So being going end of is

for coming been just A quick competing on hearing device copper, We've a competition non-hormonal bit a one on market. CSI. from little PARAGARD on the

So in maybe and alternative loyalty marketplace. the on versus PARAGARD copper a just little bit brand new just take to your the in competitive landscape a broadly IUDs on

the governed IUDs And remembering product is it's think mean that products. I only approved the now, worth PARAGARD in pharma as marketplace. right I Yes. are Sure.

I a and PARAGARD, that's So single full We've fantastic hand now. we practitioner it their arduous, a PARAGARD, into has it. right on which the a lot the process It to else's been have is to the in tied pushback times, comment unique so on inserter long indication, a IUD getting But for the long to We was what just to somebody and to process very And I is the approved. selling product or that more through a it's time. can went was team regulatory fantastic. market that got say journey the approval. XX-year That's approval approval get process that. can't of is insert if market there efficient way

have that's the marketplace. So improvement we a nice in

is So where spot. PARAGARD in actually sits a pretty now good right

question comes Sandler. Your next of Jason Bednar from line of Piper the

demand you rate had and can ] a that CVI, exit to I provide throughout July to quarter, more wanted come of the you on the really August. the cadence see color bit [ from into back

for I you MiSight. mentioned good a season think back-to-school

we that on the extends of if note. to guess business I the high was your as wondering that third if exited just a rest So quarter,

good we're I a had August. a We good would Yes. say having July.

market I'd we're asked positive kind say increased seeing I And to that news So that The forth, more and we're MiSight yes, and about somebody earlier so at. question of seems certainly. our is excited am and in the on demand about healthy have remaining where receptivity business. we're seeing market side. the on my

good here last in in months quarter another expecting month of starting been I'm have general, QX. But we're for and off well. fiscal is the good the yes, So couple

one. hearing reversing toric its J&J's other its decision that course cut We're SKUs. one on then to And

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fine So of on think no, I side that things. we're

Capital Brett comes KeyBanc next Your Fishbin Markets. of question from the line of

have really the seen major the It's the the few lens uneven contact exception to over and say, market quarters. pretty of striking, seemingly a I with perhaps like in past healthy this that some space we've been year results

on difference the call you over outperformers seen separating, few Just some such underperformers are of if different differentiators like biggest it, of the quarters? yourself And across the past from can the as comment the players? we've maybe that that what the curious level like

Yes.

look the think that people of take when any But the individual comes when forth. tough always business to the happen. and issues best, lens best arguably it supply a it's couple seen and market. the or shipping market, we have different the having say, at quarter we've I the at lot the a last end and at segments a I of over model of because some at issues of broadest products I you day, But best contact can of our of little look lot the in years markets to things some so them portfolio, okay,

and silicone portfolios. and torics has The then daily the multifocals. So over are dailies I mean, their to us, think from rest at get market, got and shifted you've people profiles market portfolios you to look daily consistency. got you've of continues I you're where and disruptions going I shift specifically, to the think hydrogel in when and business

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don't because to is results you end moving day, results forward just I strong to of market a quarterly the got don't and healthy at going So you decent know. all demand. put I necessarily continue underlying have the read too everyone the competitors much into because up

follow-up line? coin that really be approval quick on the time data other management. there should Myopia just And not, to? any around attention we the with side been if points a really FDA the updates what's And then next of paying Have the SightGlass like

fantastic part approval On the that. of look on SightGlass, [ right was that and gave get try commentary We're latter in hoping Sure. we no to now. get clinical kind working The FDA Yes. that ] updates approval. through to process we to FDA We're have on them. last the some next true of who venture space, things. mentioned leader relationship things some we're doing excellent earlier, in that with I EssilorLuxottica and control, an doing joint fantastic is with they're in working year. it and Myopia and

to to With great Myopia get around ultimately have promote really world. launched, working And we really really right and really together the here SightGlass, its be way the FDA and around trying world. to also. that it companies in doing need there, really now. correction do two continuing care approval help help well there and the and we're looking It's and product China make MiSight forward children well visual successful to get So

Your Saxon comes David of Needham. from next line question the of

management. Myopia continue on Maybe I'll with

math, looks should to least say. like I at ortho-K, quarter, return on So I in mean, the my it growth or growth

percent coverage much driving strengthening what's the by that? on what reach critical inning guess world? you're can recovery How I payer about of versus in, when kind expect driven I'll kind to And in or commercial follow-up. we terms one for mass you you of of of what the And of China MiSight, have that then talk that? So is should rest

say would true I when is management, this say MiSight. and would for it ortho-K and Myopia I to comes Sure.

is China. Our weakest market

struggle. don't as a in be we China, population would a Now a amount China opportunity control the because we there's do of Myopia that There's in with lot period, such company. treatments these of high of where business a pediatric that's market a percentage tremendous Myopic. in But

success by as outside China. So being doing it's well we're as largely driven of

slow I know I now, think consistency tremendous opportunities follow we're but China past. of not there the that's make in there's coverage even past out ortho-k say seeing progress guys right growth growth but in you about probably some than Aetna get You the Kaiser I [ about and MiSight and and do, MiSight than do, I've [ but ] to think ] it, talked driver. If to some insurance coverage, we I great probably in better with a it'd not be really coverage sure. closer would China I because continue

that's be to that really point, And to but when treating. some just market the control we along really all market kids get that slowly, slow that so on surely. practices think are kick of treating reimbursement. care insurance to really I've just I the insurance the myopic on at to going should calls steady Until spectacles other that we're continue think I think them prior I will make come get way and the optometry go standard right, I comments progress back start made to in need continuing looking they and plug in, and become to we'll reimbursement.

storage And in think in stem then quarter, business, slightly of to still you flat had the think, Is expectations up. CooperSurgical, I medical And last PARAGARD the case? I and being of little some the single kind then Brian, part out launches? devices you about singles, growth? then you called driving talked M&A cell that of some et product And that of a granular, what that digits, is Maybe contribution Is growth. organic or Is more these get what that? can high of cetera? kind

will but little a a STEM was it just head kind bit, and be or see this lot, a this not slightly. was it be give up to going organic I'll we're ] year up if year, up, Yes. just was is that to stop here, couple mean think, I of growth. [ has my I'll Brian X%, add. usual, I anticipating anything around it PARAGARD being up and

of things. done side mentioned. or on that small haven't Brian just any anything did the ones We We acquisitions two

don't I right Yes. numbers. are have Those to add. the anything else David,

next comes of the Lichtman line question of Steve Your Oppenheimer. from

to few up in PARAGARD, had dynamics follow you've so last the the wanted Just moving on with parts quarters. stocking

forward PARAGARD you of your and looking for As is the outlook what this your outlook? pluses and beyond driving coming for look just underlying growth minuses sort quarter,

has a Sure. down longer marketplace you're Yes. you But term, numbers, about I declining mean, will I sales. think bit again. look unit can in in I be the think QX a back little PARAGARD talking if I that

fine. And going I IUDs, X% not. But is okay. right? creates we'll So ultimately, not in that's which price the available birth it's non-hormonal -- more I maybe price. But think big marketplace our growth meaning we're market, the mean, because bit to not units, mean terms to than of for ] PARAGARD But to We've again. the [ options less control. there's getting just few I of I it's challenge. little the continue a women price that's times, do it's revenue. of take taken is growth of a declining mean

be so I would talking don't I -- we it's know that about we So talked about time why it, -- but much mean, spent the answer.

mentioned And moderating. then, Brian, you CapEx

supply, ability demand the given moderate investment? drives outstripping the that to Just what

to clear when to want is be result the I I yes, and while we'll certainly in on future efficiency just guidance CapEx year. activities, continuous light year, moderates, will be necessarily a year I mean, that I improvement CapEx talked in and next wasn't about get even that giving going next wasn't to work suggesting I gains. Steve, though. to

launches the of capacity we launch adding better-than-expected outstripping have places. we're capacity So results. our and based every modulating have, great just and supply, and on we our on of but activities that a We're capacity doing number and is about the in demand Certainly, capacity at constrained still a month, supply yields coming and we're some

next next So a to I'm still cash number. year, year free than I'd I million about year, CapEx free just this this that year. the going reiterating $XXX of flow of big better have And around sort expect being we're cash talked flow.

I say wouldn't So but things [ are positive, that for ] looking initially a in year. change major CapEx next

question from comes Nephron the next of Your Chris Research. Pasquale of line

you the more out looking number Could one question just the ask slate. I'll were you clarify thought this PARAGARD I for to fill we sequentially. just down for quarter?

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So do XQ? did what PARAGARD in

$XX [ ]. million

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that there. we of into dailies So people fit are everything an right people runway go a of as else as going we long amazing. we runway [ and back its of that somewhere They're less I clean, much to XX% industry. around continue it's dailies not to are about have those being it. just into Those bits ] in not along half dailies, never they are them I you XX% dailies increasing, are industry out, call have goes wear fit Less half think the throw about would now how the a to increase. in being fact still I If into of with too now. I to right of -- into wearing much than take I put than mean marketplace numbers just dailies. an that. When to them read dailies, easy go But out, hydrogels. tells them so silicone going on and daily safety just

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me continuing know -- daily to over if inning left shifting, hydrogels shift and multifocals. torics don't as and way, many So an we're but years that silicone I what at I have think you ask we we industry to

Your line Ty comes the last of Navann of Paribas. question from BNP

then to you term? a launch versus hand PARAGARD. on single at inserter the progress CVI, visibility I more the capacity on differentiator competition? Is And have resume activities upcoming in enough follow-up a do have near the First

hand inserter, or the There don't on get and the on what inserter is On with par, is the market. with on. puts the what us will, get single they'll by puts say hormonal us approval to going if won't market. you that approval it on used know par single-hand and IUDs competitor I I'd do

the [ par active say are other won't on evaluating in like products capacity, that are market opportunities, the I But puts we of marketplace. On some it if you product progress speculate making that us incremental launch So will there. capacity, terms ] I on with will. are into Marina more and the and great getting we in

would So would it yes, we on good visibility I answer very that and that positive be have news.

more to are White, conference turn There the over questions. no closing now President Al I remarks. will and CEO, for back

Great. strong thank you in. about. called who had Thank as operational talked We you, quarter a and really we everyone to

As really short in here and the we're and plan. we're deliver term. continue to going focused that to long term Brian said, That's results our on

forward seeing again. quarter. to thank you this Look during Thanks. So everyone

call. that concludes you gentlemen, for joining. today's Thank and all Ladies

disconnect. now may You